Why is Japanese PS5 cheaper? A gamer‘s guide to the pricing quirk

As a keen PlayStation gamer and someone who follows industry news closely, friends often ask me why the PlayStation 5 still costs noticeably less in Japan – upwards of 40% cheaper versus retail prices in the US and Europe. On the surface it seems like a great money-saving tactic to simply import the latest console hardware from Sony‘s home country. But as with most things, the reality proves more complicated.

In this article I‘ll break down exactly what‘s driving the Japanese PS5 discount, whether those savings stack up once you calculate in all the extra costs involved with importing, and ultimately if it‘s worth the hassle for most buyers abroad to jump through the necessary hoops.

It‘s (almost) all down to the weak Yen

There‘s no great secret or Sony subsidy in play here. By far the biggest factor allowing PS5 consoles to retail over 30% less in Japan comes down to currency exchange rates with a weakening Japanese Yen.

As the charts below show, the Japanese Yen has devalued heavily against the US Dollar over the last 5 years. This long-running trend accelerated rapidly in 2022. Right now ¥135 JPY only equals $1 USD – representing over a 20% loss in value compared to rates in early 2018.

Chart showing Japanese Yen has lost over 20% of its dollar value in last 5 years

This currency depreciation effectively makes Japanese consumer goods much cheaper for overseas buyers. When the PS5 first launched in November 2020, ¥55,000 translated to roughly $520 USD. Today that very same Yen pricing gets you a PS5 disc edition for only $410.

To illustrate just how advantageous the pricing gap has become, check out this comparison table:

So while Japanese gamers enjoy the PS5 for the same ¥55k Sony targeted at launch, overseas buyers now get over 30% off thanks to exchange rates working heavily in their favor. Unfortunately this currency fluke doesn‘t extend across the whole of Asia however. In China for example, where consoles sell officially for the first time, Sony‘s recommended PS5 price remains very close to western pricing when converted to USD.

Why doesn‘t Sony adjust Japanese pricing?

With the Yen spiraling lower and lower, why then doesn‘t Sony raise prices locally to realign with dollar or euro-based pricing abroad? There‘s a few reasons why pricing parity remains elusive:

Keeping console gaming affordable at home is the priority – Japan used to be Sony‘s strongest market and retaining as many loyal fans as possible takes precedence, even if margins suffer.

Japanese prices changing slower than inflation abroad – Meanwhile currencies like USD and Euro are facing high inflation in the +8-10% range annually. So overseas PlayStation pricing creeps up while Japanese pricing holds steady.

Ongoing supply shortages – Demand still continues to massively outstrip production. With PS5 consoles selling out instantly across Japan and worldwide, Sony possesses little incentive right now to hike pricing which could dampen interest.

Delving deeper into the supply challenges, even in my home country of Canada PS5 stock remains nearly impossible to track down at retail over two years from launch. Whenever inventory appears it vanishes from online stores here in minutes. Seeking availability updates and timing restock luck has become almost a competitive sport among gamers!

The situation has bred opportunities for scalpers to buy up limited supply using bots and resell with giant markups. Here PS5 discs now average $650 CAD – representing a staggering 45% premium over Sony‘s $549.99 MSRP sticker price. Frankly it‘s outrageous, but goes to demonstrate just how dire the supply crunch remains.

eBay listings showing PS5 consoles resale at 150% markup

Does importing a PS5 from Japan make sense?

With the PS5 lagging around 40% cheaper in Japan on average, it sure seems like a smart money-saving idea would be to import. But for those located outside Asia, does chasing the exchange rate discount actually pencil out once you calculate in the extra costs and hassle of international importing?

The base savings argument – First off, without any question you can indeed save a decent chunk of change buying PS5 hardware straight from Japan rather than locally. Even after adding estimated shipping fees plus import taxes/duties, importing a PS5 disc console still should net over $100+ savings for buyers in North America/Europe.

No functionality or compatibility compromises – Unlike past generations, today‘s PlayStation consoles no longer come region-locked. So a Japanese PS5 will operate perfectly fine connected to PSN accounts abroad. Gamers face no game compatibility issues or online service restrictions either based on console region. Only China remains isolated with special hardware. So at least no technical hurdles exist to easily enjoy a Japanese PS5 overseas.

Downsides to consider:

• No local warranty coverage – Probably the biggest risk. Your warranty won‘t be valid sending hardware back to Japan if issues arise. You‘ll have to ship the console internationally on your own dime for repair hopes.
• Weaker exchange rates erase savings over time – If the Yen regains strength, the pricing advantage can quickly evaporate leaving you saddled with the importing hassle.
• Language challenges – While firmware language won‘t cause problems, all packaging/instructions come exclusively Japanese. An issue for less tech savvy buyers.
• Cumbersome import process – Actually securing a PS5 locally in Japan takes connections. Then organizing international delivery means handling customs declarations, finding a willing forwarder, and stressing through weeks of transit hoping your precious console arrives issue-free!

The final verdict

I‘ve debated pulling the importing trigger myself at times purely out of frustration over the constant PS5 stock shortages here. Surely locating stock must prove easier in the console‘s home country?

But with no guarantee around sourcing one easily in Japan plus the risks around shipping, customs & warranty, I‘ve chosen to wait it out keeping hunting locally. The savings feel tempting given Canada‘s major markups, however for me personally the juice isn‘t quite worth the squeeze. Thecons outweigh the Yen discount pros when all factors get considered. Just my two cents!

I‘d only recommend importing to save money for truly patient, determined gamers with a decent existing support network/connections within Japan to handle the logistics smoothly. For everyone else, keep chasing restocks closer to home. Local supply should catch up in 2024 (hopefully!) making the whole importing equation pointless anyway.

Have you managed to buy a PS5 yet in your country? Feel free to hit me up on Twitter to chat about stock hunting strategies or discuss other next-gen gaming topics!